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5-8 and 5-13

# 5-8 and 5-13 - x 45000 x 45000 Amount 29250 15750 9500...

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Problem 5-8 C(q;P) = 300q -20q 2 +q 3 Cost per unit for single product firm: AC = C(q;P)/q Marginal Cost MC = dC/dq = 300 - 40q+3q 2 LLA is described as C(q;P) = a + bq, where b = MC(q;P) solve for a by plugging b, q, and C(q;P) into LLA Problem 5-13 P roduct A Product B Units Produced 1200 4800 DM 6500 3500 DL 3000 9000 Manufacturing OH 45000 Total 9500 + ? 12500 + ? Cost Allocation: Unit Rate 1200/(1200 + 4800) 4800/(1200 + 4800) x 45000 x 45000 Amount 9000 36000 9500 + 9000 12500 + 36000 Total =18500 = 48500 18500/1200 48500/4800 Unit Cost = 15.42 = 10.10 Cost Allocation: DM Rate 6500/(6500 + 3500) 3500/(6500 + 3500)

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Unformatted text preview: x 45000 x 45000 Amount 29250 15750 9500 + 29250 12500 + 15750 Total =38750 =28250 38750/1200 28250/4800 Unit Cost = 32.29 = 5.89 Cost Allocation: DL Rate 3000/(3000 + 9000) 9000/(3000 + 9000) x 45000 x 45000 Amount 11250 33750 9500 + 11250 12500 + 33750 Total =20750 =46250 20750/1200 46250/4800 Unit Cost = 17.29 = 9.64 Cost Allocation: DL+DM Rate 9500/(9500 +12500) 12500/(9500+12500) x 45000 x 45000 Amount 19432 25568 9500 + 19431 12500 + 22568 Total =28931 =35068 28931/1200 35068/4800 Unit Cost = 24.11 = 7.93...
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